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In three to four sentences, explain if there is excess supply or demand of goods at the equilibrium price and why.

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Answer with Explanation:

An excess in supply happens when the price of a good/service is higher than the equilibrium price while an excess in demand happens when the price of a good/service is lower than the equilibrium price. When it comes to excess in supply, the high price of goods/services attracts the sellers to produce more goods so they can gain more profit. On the other hand, when it comes to excess in demand, the low price of goods/services attracts the buyers to purchase more.

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